Armenia occupies 79th position in World Economic Forum's report

YEREVAN, SEPTEMBER 4, ARMENPRESS. The World Economic Forum issued the World Competitiveness Report for 2013-2014, where the Republic of Armenia occupies the 79th position. As reports “Armenpress” this year’s prospects perspectives turned out to be more positive in comparison with the previous year.

For the fifth year in a row, Switzerland ranks as the most competitive country in the world. It is followed by Singapore, Finland, Germany and the United States, which this year reverses a four-year downward trend. The World Economic Forum’s Global Competitiveness Index finds three sub-Saharan African countries - Burundi, Guinea, and Chad - holding up the bottom of 148 countries surveyed.

The study provides grounds for optimism that the global economy may finally be stabilizing following the freefall of recent years. The Global Competitiveness Index notes some of the southern European countries, in particular Greece and Spain, are moving up in the rankings after several years of decline.

The World Economic Forum chief economist, Jennifer Blanke, says this might indicate the reform process, which has been under way for the past couple of years, is starting to bear fruit.

She says a number of things that were of great concern a year ago have not come to pass. She notes, for example, the predicted breakup of the eurozone did not happen and the United States did not hit the debt ceiling.

“Really, we are seeing signs of life in the global economy. But, at the same time, things are slow. You still see a number of European and other advanced economies struggling,” Blanke said. “You see a slowdown among the developing countries. And so, I think our main message coming out this year is the importance of ‘You know, it is great we have got over the short-term firefighting, but now let us get back to business in terms of the sorts of reforms that are needed.’ So, loosening up labor markets, making them more effective, and things of that nature.”

Blanke says prospects for the economy going forward are good if governments get back to the hard work of attacking some of these structural issues.

The United States, which has dropped in the WEF's rankings for the past four years, is finally making a turnaround. This year it has moved up two places into fifth position. The report attributes the U.S. rise in the rankings to a perceived improvement in the country’s financial markets, as well as greater confidence in its public institutions.